11 Pros & Cons Of An Online Food Business

What are the pros and cons of starting an online food business?

An online food business has a few pros and cons, which you should be aware of before getting started.

Here are the high level benefits and drawbacks of an online food business:

Pros	Cons
• Flexibility	• Crowded Space
• Ability to start your business from home	• Finding The Right Supplier
• Rewarding work	• Motivation of employees
• Scalable	• Low margins
• Meaningful business connections
• Quick build time
• Easy to encourage "impulse buy"

• Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

• Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

• Rewarding work

Starting a online food business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

• Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services within your online food business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

• Meaningful business connections

You never know who you will meet or get to work with for your online food business. This could be the start of an incredible business opportunity!

• Quick build time

The average time it takes to build your product is quick - typically around 12 months. This will allow you to bring your product to market faster.

• Easy to encourage "impulse buy"

In the online food business, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.

• Crowded Space

Competition is high when it comes to your online food business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

• Finding The Right Supplier

Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.

• Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

• Low margins

The gross margins for your online food business are typically around 30%, which can make it more challenging to incur new expenses and maintain profitability.